5 Reasons Why SMEs Should Outsource their Accounting Processes to an Accounting Firm in Singapore
Crunching numbers is a herculean task, and not all entrepreneurs are born with an aptitude for numbers. Add to this dilemma the nuances of starting up a business and things can only get worse. The new entrepreneur has to handle so many things, that bookkeeping and accounting are always postponed for a later hour. However, this would be a grave mistake made by a start-up, because even if one transaction is missed, the financial statements can go haywire.
Therefore, to bridge the gap between poring over the account books for correcting the errors and getting it right the first time, it is always wise for the SMEs to hire an accounting firm in Singapore. This remains valid especially for those who are just starting up or trying to get their feet wet in the trade. Hiring, training and retaining a full-time in-house accountant comes with a huge cost, and as the trade starts expanding, just one accountant does not seem to be enough.
Let us quickly leaf through the reasons why SMEs should think of outsourcing their small business accounting & bookkeeping to a third-party accounting firm Singapore.
1) Maintains Accurate Account Ledgers – Ledgers need to be recorded and updated on a daily basis. It is not a onetime affair. A missed transaction is difficult to track, is time-consuming and very demoralizing. On the other hand, a Singapore accounting firm remains on top of every transaction and maintains it with diligence.
2) Compiling the Financial Statements – Gathering all the account books and compiling them is very essential for analyzing the financial health of a company. Therefore, it is advised to hire professionals who provide accounting business services. They will gather, analyze, review, record, and draft compiled financial statements.
3) Ensures Adherence to Tax and Compliance – An accountant service provider also helps with all the complexities of tax requirements. Tax filing, tax planning, and adhering to tax deadlines are taken care of with precision. It saves the SMEs a lot of time and frustration. However, when an organization plans to deal with taxes on its own, it may happen that the SME may not apply for all the tax credits and incentives, for which it is applicable, due to ignorance. Nevertheless, when an accounting firm comes into picture, it saves the SMEs from all such pitfalls.
4) Payroll Administration – Gathering data, compiling, and reporting for payroll is a laborious task. When outsourced, the whole chunk of work gets transferred to the accounting firm. In the mean time, the accounting firm takes into consideration all the allowances, deductions, leaves, CPF, and all other variables for every employee, calculates the correct salary for every employee. At the same time, they ensure the salary gets disbursed to all the employees on time.
5) Handling Business Credit – SBS Consulting can help you manage your credit file. We will monitor your business credit history and keep your business credit score updated by reporting to the business credit bureaus. This is an important process, as it helps you maintain good credit.